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Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be:
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Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital i...
Calculation of Capital at the End of the Financial Year

Initial Capital:

  • Capital introduced by Mr. A on 01.04.09 = Rs. 300,000



Additional Capital:

  • Further capital introduced during the year = Rs. 50,000



Withdrawals:

  • Mr. A withdrew Rs. 2,000 on the first day of each month

  • Total withdrawals during the year = Rs. 24,000 (2,000 x 12 months)

  • Interest on drawings charged @ 5% = Rs. 1,200 (24,000 x 5%)



Profit:

  • Profit earned during the year = Rs. 20,000



Calculation:

  • Opening capital = Rs. 300,000

  • Add: Additional capital = Rs. 50,000

  • Less: Total withdrawals = Rs. 24,000

  • Add: Interest on withdrawals = Rs. 1,200

  • Add: Profit earned during the year = Rs. 20,000

  • Closing capital = Rs. 347,200 (300,000 + 50,000 - 24,000 + 1,200 + 20,000)



Therefore, the capital at the end of the financial year will be Rs. 347,200.
Community Answer
Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital i...
Rs 3,46,000
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Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be:?
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Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be:? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be:? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Capital introduced by Mr. A on 01.04.09 Rs. 300,000, further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 on the first day of each month. Interest on drawings is charged @ 5%. Profit earned during the year was Rs. 20,000. Capital at the end of the financial year will be:?.
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